Stock of the Day

September 13, 2019

Manulife Financial (MFC)

$30.36
-$1.46 (-4.6%)
Market Cap: $54.83B

About Manulife Financial

Manulife Financial Corporation, together with its subsidiaries, provides financial products and services in the United States, Canada, Asia, and internationally. The company operates through Wealth and Asset Management Businesses; Insurance and Annuity Products; and Corporate and Other segments. The Wealth and Asset Management Businesses segment offers investment advice and solutions to retirement, retail, and institutional clients through multiple distribution channels, including agents and brokers affiliated with the company, independent securities brokerage firms and financial advisors pension plan consultants, and banks. The Insurance and Annuity Products segment provides deposit and credit products; and individual life insurance, individual and group long-term care insurance, and guaranteed and partially guaranteed annuity products through multiple distribution channels, including insurance agents, brokers, banks, financial planners, and direct marketing. The Corporate and Other segment is involved in the property and casualty reinsurance businesses; and run-off reinsurance operations, including variable annuities, and accident and health. The company also manages timberland and agricultural portfolios; and engages in insurance agency, investment counseling and dealer, portfolio and mutual fund management, property and casualty insurance, and mutual fund dealer businesses. In addition, it provides integrated banking products and services. The company was incorporated in 1887 and is headquartered in Toronto, Canada.

Manulife Financial Bull Case

Here are some ways that investors could benefit from investing in Manulife Financial Co.:

  • Manulife Financial Co. has a strong market capitalization of $51.31 billion, indicating a robust financial position and the ability to invest in growth opportunities.
  • The current stock price is $29.78, which is near its 52-week high of $33.07, suggesting potential for price appreciation as the market recognizes its value.
  • Institutional investors own 52.56% of the company's stock, reflecting confidence from large financial entities in Manulife Financial Co.'s performance and stability.
  • Recent filings show that several institutional investors, such as Allspring Global Investments, have increased their stakes, indicating positive sentiment and potential for future growth.
  • Manulife Financial Co. operates in diverse segments including Wealth and Asset Management, Insurance, and Annuity Products, which can provide multiple revenue streams and reduce risk.

Manulife Financial Bear Case

Investors should be bearish about investing in Manulife Financial Co. for these reasons:

  • Blue Trust Inc. recently reduced its position in Manulife Financial Co. by 41.5%, which may signal a lack of confidence in the company's short-term prospects.
  • The stock has experienced fluctuations, with a 12-month low of $22.61, indicating potential volatility that could concern risk-averse investors.
  • Despite a strong market presence, the company's price-to-earnings (P/E) ratio of 14.38 may suggest that the stock is overvalued compared to its earnings, which could deter some investors.
  • Recent trading volumes have shown variability, with 2,804,610 shares exchanged on a day when the average volume was 1,976,340, indicating potential uncertainty in market interest.
  • With a beta of 1.09, the stock is slightly more volatile than the market, which could lead to larger price swings and increased risk for investors.

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